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Does Title Insurance Matter?

Does Title Insurance Matter?

Does title insurance matter? This is a question that many people ask themselves when they are buying or selling property. The answer is simple: yes! When you buy real estate, it's your responsibility to do research on the validity of ownership and title. If you don't, something could happen years later that makes your property subject to litigation or legal action. Let's say there was an error in recording documents when purchasing your home – these oversights can be difficult if not impossible to address at a later time. There are many reasons why title insurance matters; we've listed just a few of them below for you!

What are the most common reasons to buy a title insurance policy? 

You might want to protect yourself against any oversights when researching the title. 

  1. The property you're buying might have issues with ownership or title that could come up later. For instance, if there was an error recording documents at purchase, then it would be important for you to have a title insurance policy in place. 
  2. The benefits of having a good title insurance policy in place may outweigh the costs of getting one.

Title insurance is important for a lot of reasons. The process of purchasing title insurance does not take much time, and it’s usually not very expensive either. But if you skip the step to purchase title insurance, there are some serious consequences that can come back to haunt you. Title insurance protects your property against any unknown liens or encumbrances that may be on your title. This means that even if you think everything is good now, when something goes wrong with an old lien or encumbrance on your property, a home buyer could refuse to buy from you because they would have no way of knowing about this problem until they start looking into the property history in detail.

What does title insurance do? If there were any liens against someone else who owned the house before you, then sometimes these are not released when they sell their home and so there could be additional costs for clearing up titles or fees due if anything goes wrong.

If you are not sure, then speak to an attorney who is experienced in real estate law. This also protects the purchaser from any latent title defects that may have gone unnoticed when they purchased a house or property and if someone files a complaint against them because of it, then this type of insurance will protect them financially (in most cases). There has been some debate on whether title insurance should be mandatory but there are pros and cons for both sides so ultimately your decision would depend upon which side you feel would benefit you more.

This way, you can rest assured knowing all the proper documents have been researched and published at appropriate times to avoid any future problems with ownership or title. If something does happen in the future (which it never should) this coverage will take care of your investment so there are no worries! 

About The Author


United Tax Liens is a group of experienced, active investors providing everyday people with access to one of the best Real Estate Investment vehicles available today.

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